>> the obama presidency, the second term begins in private ahead of a public party on monday. this is a special inauguration sunday "special report." president obama's second term began quietly shortly before noon on this sunday in the blue room of the white house. good evening, here in washington, 13 seconds left, welcome to washington. it was the centerpiece in a day of relatively little fanfare which is being saved for the public ceremonies tomorrow.

we have extensive coverage tonight beginning with ed henry at the white house. >>reporter: this time, it was flawless because of note cards for chief justice john roberts. >> i do solemnly swear. >> for president obama both a solemn constitutional event in the blue room and a dad sharing an emotional moment with his girls. >> i did it! >> a sigh of relief, 75 days after a tough re-election victory over republican mitt romney but right back to work for a president getting regular updates on the terror attack in algeria a reminder of the grave threat from al qaeda, one of many looming second-term challenges hanging over the swearing in where the aides say the address will bring the nation together.

>> people here in washington need to seek common ground he will make that point. >> there are other signs suggesting the opposite such as defiant tone at the news conference last week and a new group made up of fore campaign aides now planning to pressure congress. >> i was surprised this week to see him transition the campaign committee into an ongoing campaign-style effort to have an impact on the washington debate because it doesn't seem the lesson of the first term that worked out very well. >> those battles begin again on tuesday, for now it is pomp and circumstance. >> starting with vice president biden getting sworn in after 8:00 a.m. because justice sotomayor had to rush to new york city for a book signing. >> we will walk out, her car is waiting so she can catch a train, i hope i have not caused her to miss. >> biden later joined the

president at arlington. then obamas worship at historic black church to pay only an to martin luther king and today he will use two bibles, one used by king and one by abraham lincoln. >> their actions and the movement they represented are the only reason that it is possible for me to be inaugurated. >> martin luther king day is dome and the president see as connection to him being on the podium and the sack credit files of dr. king and many others. he will talk about that tonight in a reception here in washington at 8:45 p.m. eastern. >> thank you, ed henry for all of those who did not know my reference at the top of the show was to the football game that was ongoing at the time. congratulations to the 49ers who are headed to the super bowl. for those who were watching the game who may just be joining us, welcome aboard to the special "special report."

one lasting element of a president is the effect on the supreme court. so far, president obama has put two justices on high court, both women, both considered progressives, left of center, and tonight, we look at what is ahead. >> in the event there is a vacancy the president is going do come under immense political pressure to swing. >> after initial g.o.p. resistance successfully placed two nominees on the high of the court during his first term. justices sotomayor and justice kagan but he will not have to answer to voters again and many believe he is under pressure to go with a more progressive pick. >> you will hear a lot of the base and the activist groups pushing him hard, a home run appointment. >> the court is split with justice kennedy often serving as a swing vote. with four justices now well if their 70's including ginsburg

who will be 80 in march, it is likely the president will have additional opportunity to shape the court but he will have to go through the senate. the democrats with the help of two independents have a 10-vote advantage, 55-45 it take only 40 votes to filibuster the nominee. >> it should be an extraordinary step to filibuster a supreme court nominee, really, to any court. whether there are 40 votes to do that for more progressive nominee, that remains to be seen. >> if he makes a crazy pick i will filibuster in an extraordinary circumstance. >> it is something senator graham has done before but not to either the president obama's supreme court picks. he says absent glaring extremism republicans have a duty to defer to the president. >> you cannot expect to lose the election and still get to control who goes on the court. you can push back if it is an extreme pick but elections have

consequences. >> consequences that last far beyond one or two four-year terms. >> any president should think about the mark he is making on the judiciary because it is one of the most fundamental legacies you leave, the justices you appoint, the lower court judges will it is for decades longer than you serve as president. >> no justices have publicly hinted at leaving the retirement watch heats up near the end of e term in june when they could step down. >>bret: the defining moment is the inaugural address. we are told it will be forward-looking. aides say it will emphasize the founding values. tenth, chief washington correspondent on what we have heard before and will likely hear tomorrow. >> the more things hope and

change, the more they stay the same. >> our economy is badly weakened and health care is too costly and schools fail to many. these are the indications of crisis. a nagging fear that america's decline is inevitable and the next generation must lower its sights. >> the speech he could give word for word again right now because so little has changed. in that speech he talks about wanting to end two wars, too many people are out of work, reaching out to the muslim world, reforming our schools. there are all kinds of redundancies he can thought go back to. >> supporters including his most ardent factor, hold the view the second address will be fundamentally different from the first address, not because he is hemmed if by similarities between today and four januaries ago but because the nation is in a fundamentally different place.

>> this economy was losing 800,000 jobs a month and a lot of folks wondered whether we were headed for another great depression. do you hear me? this is what he faced on day one as president. >> as you know, he takes very seriously speeches of this kind and is very engaged in the process. the president in general when he works on a speech writes in long happened on a yellow pad. i have seen yellow pad filled with writing. >> sources say the address is only the most visible of the events and all participants including president obama are on guard not to appear too be spiking the football. >> he will lay out his vision for the second term where america needs to go tomorrow and the specific details will be included in the state of the union address. >> another democrat involved in

the planning says we do not want the message at joe six-pack meaning that the president is up there having a big party while we are all still stuck in a financial crisis. >>bret: what do you expect from the president's speech tomorrow? did we get home and change the last four years? what is ahead in the next four? we will examine that a bit later. next, getting the capitol ready for the close up. look at that live shot. searing for a bank designed for investors like you? tdd#: 1-800-345-2550

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building behind me. john roberts shows us how everyone there is getting ready. the sound checks and rehearsals done and the platform awaits the president. the person preparing the most is the man who runs the show, senator charles schumer. >> there are 14 times when i introduce and sit down and remember what happened to justice roberts so i am making sure i practice. >> organizers hope the flubs are history as they prepare for a crowd that could be a third of the two million last time that overwhelmed the national mall. >> after the chaos of 2009 the committee has a smartphone app to tell people how to get from leader and there and avoid a thousand of those who caught in a tunnel and missed the

inauguration. the biggest problem is the area of partisan toxicship. >> most suspend that rang core for the inaugural for the special events but the problem is by the next dawn they are right back fighting with each other. >> after a hard fought election and tough battles in congress, this inauguration draws comparisons to 2001 when tensions ran high over george bush. >> i suspect it will probably be a lot like the atmosphere of george w. bush in his first term. it was chilly and cold. >> the joint committee will do their best to warm it up at the inaugural luncheon where the president and joe biden are giving crystal vases but with obama seated with harry reid and speaker boehner, i half expect a food taster present but joking aside, they will be collegial,

that is expected. >> senator schumer joked he and his inaugural co-chairman will be sitting between be to keep it simple but he said for the sake of the nation he hopes the two parties find a way to develop a better recentship in the years ahead. >> that tunnel ordeal was a mess, i heard they did not even print purple tickets this time. >> they retired the purple ticket after what happened in 2009. >> battery fire on a japan airlines 787, two weeks ago was not caused by overcharging. the national transportation safety board said there could be problems with wiring. the f.a.a. in the united states and many other countries grounded the boeing 787 dreamliner until they get answers. the plane relies more or electrical system than older aircraft. still ahead, a look back at the president's first term with a look ahead toward what could

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>> the hostage death toll in the aftermath of the terrorist siege in algeria at a natural gas plant has surged to 48, another report puts the total number of killed hostages and terrorists to at least 81. conor powell has the latest. >> algerian security forces combed through the debris at the remote algerian gas plant attacked by al qaeda linked islamic terrorists four days ago. five of the surviving militants were captured by algerian troops inside the facility bodies of those kills littered the ground

so it is difficult to tell hostages from terrorists. in efforts to recover the bodies have been slow, and they are describing their ordeal. (inaudible). >> the lack of information and cooperation from algeria raises the question of policies in north africa where groups are flour inning that are islamists. groups are furious that algeria launched a rescue attempt. the white house has resisted on a role relying on partnerships with regional leaders to dismantle extremist groups. >> we will take the lead of where we can, obviously to do

what we can, but we have to partner with our allies and our counter terrorism partners to make sure they have the expertise and technology to disrupt these plots. >> algerian officials will not allow foreigners to secure the country's oil fields, another indication that algeria is unlikely to strengthen ties where western countries in an effort to stamp out islamic extremists. >> fighting outside syria's capital city tops world headlines, government troops battled rebels on the ground and regime planes bombed opposition held areas with one airstrike southeast of the capital killed seven people there including five members of the same family. >> it was not a good day for terror suspects in yemen, ten suspected al qaeda operatives were killed while they were making bombs and six others died in two strikes from u.s. drones.

we will talk about the algeria operations in a bit, but, next, it started with hope and change but ended with a partisan warfare over the economy. reviewing some of president obama's first term and what it could mean for the second term. ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty. and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes.

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>> this is the view looking down the mall to the washington monument to the lincoln memorial. the mood here this weekend is much different than it was four years ago. fewer people. perhaps fewer expectations. the sense of optimism for many has waned after four tough economic years. what happened? what is next? >> we gather on this date because we have chosen hope over fear. unity of purpose over conflict and discord. >> president obama swept into the presidency on the wings of change, the pick of an energized electorate, the first african-american president. he started on day one with action on an early promise. his order to close the facility at guantanamo bay in one year. >> is this a separate executive order with respect to how we will dispose of the detainees?

>> gitmo remains open almost four years to the day after that signing. >> as he said on the trail in 2008 and 2012, the economy was the job won. >> the bill is passed. >> president obama had big hopes for the $787 billion stimulus bill which squeaked through congress in february of 2009 with just three republicans in the senate and no one in the house of representatives voting for it. >> the most sweeping economic recovery package to our history. i hope this investment will ignite our imagination. >> he was calling for the bailout of automakers, general motors and chrysler to the tune of $62 billion. >> we will not let our auto industry simply vanish. >> critics call it a stimulus of waste and question the logic of government owning private companies but others say it saved the economy and called the

auto bailout a huge success. >>the bailingout of general motors helped him in ohio and michigan and on the campaign trail. >> geithner, a chief architect of tarp and a.i.g. made the case before congress for tougher regulations on wall street. it led to the dodd-frank bill that the president signed into law. >> there will be no more tax-funded bailouts. period. >> years of spending under both parties add up and the debt ceiling talks of 2011 led to a budget attend off between democrats and republicans who took back control of the house of representatives in the midterms. >> is there a risk the united states could lose their aaa rating? yes-or-no. >> no risk. >> the debt ceiling was raised in august the political fight in the spot lighted on the deficit and debt problems less s&p to downgrade the u.s. credit rating for the first time in history.

>> geithner steered the major economic moves in the first term and now he is stepping down. president obama's pick to replace him is jack lew, who has established a close relationship with the president. lew is not is chummy with republicans on the hill after the debt ceiling negotiation back in 2011. for that reason and others, his confirmation hearing could be bumpy. if confirmed, he will be dealing with the top issue in this second term, how to get the economy moving and addressing the country's long term fiscal problems. >> this is a president that is forced to grapple with the budget woes, with the economy that cannot get over the hump. it will consume most of his time, i believe, in the second term. >> what he cannot do going into the term is go from economic crisis to economic crisis. that is not leadership. he has to figure out how to

address this in a broader policy way. our health care reform cannot waste, must not wait and will not wait another year. >> passing health care legislation early on was high on the president's to-do list. he picked kansas governor to head up health and human services, to get health care legislation done he largely passed control over to congress to put the bill together and to figure out how to get it through. it became a messy process about 2,000-plus-page bill. it did pass. it was signed into law. >> ladies and gentleman the president of the united states of america, barack obama. >> everyone should idea basic security when it comes to their health. >> president obama seemed to effectively fend off the health care law criticism on the campaign trail. >> i like the phrase obamacare because i do care.

>> it is his signature achievement but it has been an albatross. >> secretary of hhs will stay on overseeing the major aspects of the health care law implementation taking effect in 2014. there are many major questions about the health care law that still remain unanswered, about access, cost, and total coverage. that seven before it has been set up anywhere. the wild card is truly how companies deal with us. if companies start dropping coverage and agree dog pay the men at, we have a new situation on our home. >> the talk of the moves of the troops under president obama, doubling down in afghanistan. >> it has been in our vital national interests to send an additional 30,000 u.s. troops to afghanistan. >> winding down and ending the war in iraq. >> now it is time to turn the page. >> certainly the first term and perhaps the entire presidency will be remembered for one night. >> tonight, i can report to the

american people and to the world the united states has conducted an operation that killed osama bin laden, the leaders of al qaeda. >> he managed to escape the problem a lot of democratic presidents have had since vietnam which is the perception of being weak on national security. exhibit (a) is the killing of osama bin laden. >> history mostly will remember the killing of osama bin laden but truthfully it is the seals who difficulty. >> we want to reset our relationship. >> the reset with russia never seemed to materialize even after president obama was caught on camera going the extra mile to assure the russians about future u.s. missile defense moves. >> it will be hadder this time. i don't see where u.s. and russian relations can go and

that will be a problem foe the president starting, of course, with syria but iran is the bigger issue that remains undecided and we have gotten some russian help so far on iran but it doesn't mean we will get russian help with the next step. >> the arab spring signaled the fall of middle east leaders with whom u.s. officials had for 30 years cultivated careful relationship. >> president obama called on egypt's mubarak to step down. >> a change must take place. allocated u.s. resources to support a no-fly zone in libya leading to the killing of muammar qaddafi. but in syria, calling numerous times for bashar al-assad to step down, a civil continues there and the united states has not publicly stepped in. >> there is in doubt overall president obama's legacy toward the middle east is one of limited american actism.

that is shown by how we handled egypt, libya, syria, iraq. >> there are unanswered questions of the investigation into the 9/11 attack on the consulate in benghazi that killed the u.s. ambassador and three others. we have yet to hear if survivors of the attack. secretary of state, hillary clinton will testify on capitol hill on wednesday. >> at state and defense, analysts do not see a lot of changes in direction policy-wise. perhaps less of an inclination for american intervention. senator john kerry is seen as a shoo-in to replace secretary clinton. at defense, after bob gates and panetta, the president's pick of chuck hagel sends a similar message. he is republican but the past statements on israel and iran as well as his opposition to the troop surge in iraq will likely make for a heated confirmation process. if confirmed, he will most likely lead major budgetary belt tightening at the pentagon.

>> this is a president looking for what they used to say about eisenhower, against on the cheap. using drones, using intelligence in new way anything but to send troops into a foreign war. >> in the second term many analysts look for one last big push, perhaps immigration reform. with a growing latino vote adding additional pressure on both parties ahead of 2016 and others feel the time has passed for big bold moves. douglas brinkley said the gridlock in washington is very real and the president has to wake up every day determined not to be a lame duck president. and the inner team obama, he has had more chiefs of staff than any other president in history and with the next chief of staff, that will make five. we will talk all things

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>> i swear i will faithfully execute the office of president of the united states. i will to the best of my ability preserve, protect, and defend the constitution of the united states. so help me god. >> he will talk about our political system not requiring to us resolve all of our disputes or political differences but it requires us to seek common ground. he will make that point strongly. >> this time, there was no do over. chief justice john roberts had note cards and the second term

for president obama has begun, sworn in, today, in private. the ceremony is tomorrow. now our panel, editor of the weekly stand, bill kristol, associate editor of the hill and syndicated columnist charles krauthammer. bill, obviously, we will talk about the second term and what is ahead but the speech and what lies ahead, tomorrow. >> condolences on the falcons. everyone admires you, you are not showing your hurt. i said congratulations to the 49ers. >> you are gracious. look, i assume the president will give not a partisan speech and he is capable of giving quite a good speech. i am curious what he will say about foreign policy. we are at a point this and i am worried personally about the next four years but i am curious how much, both that he ended the war in iraq and the war is

receding or does he say american is signals something other than thorough retreat from the world which is how it looks. >>bret: we have the address tomorrow, but the state of the union in a couple of weeks away, what is the biggest challenge? >> we are in a real threat to our security at home and overseas but we are in a fiscal crisis. we are at odds, we have a president and a republican party not speaking to each other, we are headed, again, to the edge of the default. we have to come up with a solution to that. americans are weary of the aspirational calls for unity they hear from president at state of the union addresses and inaugural addresses but everyone is paying holiday bills worried their taxes could go up. they know that congress is broken. they know the congress is paralyzed. they know president obama was complicity in that.

the republicans made a plan do go after him, but he is complicity that the government is locked in paralysis and fear that this could go on and continue, so, it is hard for him to call for unity and lift up everyone. >> we heard from james tonight, charles, that he will likely say , again that economically, things have not changed that much. >> that is probably true, we are still in a fiscal crisis, we are still looking at very dangerous terrorism abroad, and basically he is looking at the same task but what struck me the first time around the first inaugural address was nonspecific as the

first african-american references to the historic nature of the election but you had no idea if he was a centrist or hard left guy. then, the state of the union address equivalent of which he gave at the end of february was what i thought the most radical social manifesto since f.d.a. saying he was here to change america, specifically the energy and health care, and he put out the stimulus so i expect he will give us inaugural address which will likely not be memorable and he will come out slashing, fighting, and probably trying to marginalize republicans at the state of the union address because he has an ambitious agenda and he wants do go after it because he sees himself as

world historyical. >>bret: but if it is ambitious at some point republicans have to figure into that, so, there has to be some coming together at some point. he has activated the campaign arm to do a grass roots effort to try to go to the outside and get people activated to pressure lawmakers on the inside will take ma a difference? >> i doubt it. president obama won 51 percent of the vote a clear victory, but it is not as if the country is overwhelmingly on his side on all the issues. the way he handled gun control, the issue he did not expect to deal with and he put it first, understandably, i suppose, but he did not privately meet with republicans including republican moderates. there are plenty of republicans who are in between the most hard-line second amendment position and president obama's

position. if you were johnson or bill clinton you would have private meetings or ask your chief staff or others to have private meetings with republican members and say, what can we do? what can we agree on? no. they have this task force that is entirely testimony of all the people on his side, the n.r.a. comes in for 20 minutes and he announced the gun control, he does 23 executive orders and has a list of legislation. there is not much evidence that he wants to or knows how to try to co-op the republicans. >>bret: the moody -- bloody end to the algerian hostage stand off.

>>bret: the smoke is clearing in algeria as the national gas plant. they captureed five surviving militants but the death toll is rising. 23 hostages have been killed and reuters say the number is 48. the total number of militants and hostages could be 81 with a number western governments upset how this went down. we are back with our annal. the administration said today, a.b. saying we will lead where they can lead but in this situation the algerians took the lead and perhaps washington did not know when the opposition was happening there was a lot of uncertainty and not a lot of clarity when and how this was happening. at least one american died. >> details aside, this is a little bit of question whether or not a sovereign nation is going to be micromanaged in the

handling of a terrorism event like this, the longer you wait, of course, the more you are criticized for negotiating with terrorists. they went in and as a result of the assault hostages are killed. it is a situation where they could not win. what it tells us if you step back, the bigger message here is that this doesn't look like an isolated incident. there is deep concern the events are connected. there will be other assaults in other locations and al qaeda and the islamic militants, whether it is al qaeda in larger middle east and northern africa, it does not matter. they are on the move. they are a potent force. it is going to continue. this is something that chuck hagel as the next defense secretary, as the nominee for that position, is going to have to clarify what the administration's position is going forward in terms of a

strategy to deal with a threat, they said, that was mitigateed. >> a.b. mentioned strategy and this was an article, administration strategy comes up short in north africa and you read the article there was no strategy. the strategy was hillary clinton going to algeria and asking them to take the lead. the strategy was watching the french take the lead in mali and not providing the backup we could. we have assets that could have been helpful to algerian and in another day they would have said, here is the situation we will go if quickly, and maybe you could sends something over and coordinate with us? we are out of it. you put benghazi together with mali and now with this, the degree of u.s. withdrawing and the degree to which the nations in the area think the u.s. isn't a factor, that is worrisome. >> obama came into office with

the assumption he said in the speeches we had exaggerated the war on terror and we have made it worse being insensitive to muslim feelings. he made speeches all over the middle east, it would be a new day of dialogue and respect and here we are, four years later, as a result of that idea, incidentally, he abolished the idea of a global war on terror and never used the word jihad but spoke of extremists and here we are at the start of a second term, all this is returned and it is global. the global war on terror he may have wanted to address, now it is a real warmth it is all over the globe. he will have to find a response. so far, he doesn't have a strategy at all. >>bret: more on this tonight at 9:00 p.m. that is it for the panel but

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>> presidents have been making the short trip from the white house a few hundred yards to the corner of 16th and h. street tomorrow hours before the second inauguration ceremony and president obama will make the same journey. chris wallace on the man who will greet the president. >> do you know you are being part of american history and from my perspective this is a celebration of american life. >> rector of st. john's episcopal church is talking about the tradition of the president attending a worship service there on the morning of his inauguration. >> my hope is it gives the president an opportunity for a "pause" if you will, to have some time of meditation and that the president feels inspired and ready to take this oath, this

awe some responsibility he is about to take in a few hours. >> it was roosevelt who started the cuss dome but st. john's across the square from the white house is lynched to presidents for almost two centuries. >> it has a special place because as everyone has said, location, location, location. >> who was the first presidential to worship here? >> james madison was the first and the church was finished in 1816. >> how many since then? >> every one. >> abraham lincoln worshiped at st. john's on sunday evening. >> president lincoln came after the service started, it is in the back pew right in the very back of the clutch and he did not want to disturb the congregation so he came left and he left early. >> madison sat in the middle of the church in pew54. that is the president's pew. >> wore gets out the president is coming to worship, you feel like the church is going to tilt

over because so many people are on that one side. >> the reverend shows us a book of prayer signed by every president since hoover. >> what a piece of american history. >> we pray you will shower the elected leaderses of this land and especially george, our president, and richard, our vice president, with your life-giving spirit. >> the reverend game the invocation at the bush's second innothing reality and will deliver the benediction tomorrow giving a preview. >> the benediction is asking for god's blessing calling us forth to our better nature and my gravest concern where we find ourselves is we are not speaking to each other and we have broken into camps and i think we have more in common. >> he will go back to the normal duties at the church of the

presidents. part of that is treating the president as just a member of the congregation. >> they are here to be reminded they are one of god's children regardless of what positions they have in life. >> that doesn't mean he can't get a little excited about a special role. >> it keeps you on your toes this corner of 16th and h you never know who will be in church. >> he was chosen after another pastor bowed out because of an antigaiser monday he gave back in the 1990's. the reverend has presided over a handful of same sex weddings and says scripture must be interpreted because it gives us direction, not directions. >> come back tonight just before 9:00 p.m. eastern for more of our special inauguration coverage and megyn will join me bringing live reports from the first couple during a candlelight celebration. thanks for inviting us back into your home tonight. that is live look at the place